The main focus of trading to start the week is likely to be on contracts related to this weekend’s election results like NZD and EUR pairs plus Germany 30. Heading into the weekend, major indices were showing signs of exhaustion and AUD had dropped back under 80 cents.
Asia Pacific indices
Australia 200 held 6,655 support but failed to regain 5,700 and remains stuck in the lower half of a trading channel between there and 5,800. RSI bouncing between 40 and 60 confirms the sideways trend.
Hong Kong 50 appears to be peaking. The index was unable to break through 28,190 and has dropped back under 28,000, falling toward 27,810. RSI trending down toward 50 indicates upward momentum fading and a downturn pending.
Japan 225 looks vulnerable after completed a 3 day bearish Evening Star candle pattern last week. the index peaked in a bull trap failure just above 20,500 and has since dropped back toward 20,320. RSI rollover at 70 confirms a correction starting. Next potential support near 20,255 then 20,100.
North American and European Indices
US 30 appears to be peaking. The index has encountered resistance near 22,420 and has dropped back toward 22,350 with next potential support near 22,100 a previous breakout point then 22,000. A negative RSI divergence indicates upward momentum slowing while the RSI falling back under 70 indicates a correction starting.
US SPX 500 is starting to roll over, dropping back to test the 2,500 round number from 2,513 resistance. RSI also rolling over indicates a correction starting. Next potential pullback support tests near 2,485 then the 50-day average near 2,470.
US NDAQ 100 has completed a double top near 6,000 and continues to turn back downward, falling toward 5,930. RSI breaking under 50 confirms momentum turning downward. Next potential support near 5,900 then 5,775 previous support levels.
UK 100 has been trying to rebound but remains unable to break through its 200-day average near 7,325 and out of a downtrend. On the plus side, support has moved up toward 7,235 from 7,200. RSI suggests downward pressure easing but it needs to retake 50 to signal an upturn.
Germany 30 continues to steadily advance, with support rising from 12,500 toward 12,590 and the index advancing on 12,650 with next potential resistance near 12,740 and 12,820. RSI steady above 60 confirms continuing accumulation.
Gold has confirmed support at its 50-day average near $1,288 with more possible near $1,282. The metal price has bounced back toward $1,295 but it really needs to retake $1,300 and 50 on the RSI to call off its current downtrend.
WTI crude oil continues to hang around $50.00. Support has moved up from the 200-day average near $49.30 toward $49.65 indicating accumulation with resistance in place near $50.65 then $51.45.
US Dollar Index has slipped back under 92.00 into the lower half of a 91.00 to 93.00 trading range. Next potential support near 91.35 with next resistance near 92.45.
EURUSD has climbed up from $1.1865 neckline support toward $1.1950 but it remains stuck below the $1.2000 round number which it needs to retake to call off a head and shoulders top that has been forming. RSI trending down toward 50 indicates upward momentum slowing and a downturn pending.
GBPUSD is holding steady near $1.3500 as it continues to digest a big rally up from $1.2750 and work off an overbought RSI in a flat range between $1.3440 and $1.3665.
NZDUSD could be volatile today. The pair has been trending upward from $0.7130 this month with recent support rising from $0.7200 toward $0.7255 then $0.7280. Rising RSI has confirmed increasing upward momentum. On the other hand, after a spike up toward $0.7435 failed, the pair has been siding back downward, with resistance falling into the $0.7345 to $0.7365 area.
AUDUSD is starting to roll over. Following the completion of a double top near $0.8100, the pair hs dropped back under the $0.8000 round number and is trading near its $0.7940 50-cay average. RSI falling back under 50 signals momentum turning downward. Next potential support ner $0.7900 then $0.7870.
USDSGD remains under distribution in a falling channel. The pair recently peaked at a lower high near $1.3520 and has dropped back under $1.3500 on its way down toward $1.3460. Next potential support near $1.3400 then $1.3340 on trend.
USDJPY has encountered resistance near 112.70, short of 113.00, and dropped back toward its 200-day average near 112.20. Initial support appears at a Fibonacci cluster in the 111.65 to 111.95 area, then 111.10.
GBPJPY is showing signs of peaking in both the pair and the RSI. The RSI suggests upward momentum topping and a correction possible following a big rally. The pair met resistance near 153.00 and has skidded back down toward 151.15. Next potential support near the 150.00 round number where a breakdown would confirm the start of a deeper downturn.
EURJPY appears to be running out of gas and vulnerable to a correction A new high on trend was not confirmed by the RSI, a bearish negative divergence. The pair has en countered resistance near 134.50 and has dropped back toward 133.85 with next potential support near 131.85 its previous breakout point.
USDCAD remains in a downtrend with resistance falling from $1.2400 toward $1.2360 and the pair dropping back toward $1.2335. RSI remains below 50 confirming continuing distribution. Next potential support near $1.2265 then $1.2220.
CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.